Financial Modeling and Simulation

What is Financial Modeling Simulation?

Monte Carlo simulation can be used in financial modeling as a form of risk analysis. Though it’s not commonly performed, software such as @Risk, Palisade, and others can be used to analyze how the value of a business (in a DCF model) is impacted by over thousands of changes to assumptions in the model that follow a certain type of distribution.

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses.  To how how to build an excel model step-by-step, click on the image below.

financial modeling questions

Additional Questions and Answers

CFI is a the official global provider of financial modeling and valuation analyst FMVA Designation. CFI's mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way. In order to become a great financial analyst, below are some additional questions and answers for you to explore further:

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